TATA Nano Case Study
TATA Nano Case Study
The launch of TATA Nano was planned in 2009. Nano was considered as a entry level hatchback car. Its
competition were Maruti 800, Alto and Zen. The data on passenger vehicles till 2008-09 is as follows
Type of Vehicle 2004–2005 2005–2006 2006–2007 2007– 2008–2009
2008
Passenger vehicle 1,209,876 1,309,300 1,545,223 1,777,583 1,838,593
Commercial 353,703 391,083 519,982 549,006 416,870
vehicle
Three-wheelers 374,335 434,423 556,126 500,660 497,020
Two-wheelers 6,529,829 7,608,697 8,466,666 8,026,681 8,419,792
Total 8,467,853 9,743,503 11,087,997 10,853,93 11,172,275
0
So the number of passenger vehicles manufactured in 2008-09 is 18,38,593 and the growth rate is 11%
from 2005 till 2009. So the estimated production in 2010 will be 20,41,370 passenger vehicles. TATA
Indica has a market share of 17% in compact cars from 2005 – 2008. The total sales of tata Indica for that
period is as follows:
The main dilemma for tata nano positioning is between these areas:
3. Why is the recommended positioning strategy superior to other positioning strategies that
might reasonably be considered?
The middle-class section of the country is growing at a rapid rate with the percentage reaching 41% of
total population till 2025. Also, the two wheelers provide certain benefits like fuel efficiency,
maneuverability, and less costly than nano by a huge margin. These factors will make nano unsuitable for
motorcycle segment. Also, since nano is a low-cost car, the manufacture margin and dealer margin are
less than other cars. So, the company can make profits only if they target large number of customers.
Going after a niche segment like college students might not increase the sales rapidly. This makes the
positioning of nano as a means of family transport better than others.
Among all the compact cars like Maruti 800, Zen, alto
(Competitive frame)